Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — FY2012 Earnings Presentation
16 slides from Vienna Insurance's earnings presentation, Apr 3, 2013
Slide 1: Group Embedded Value Results 2012
Group Embedded Value Results 2012 April 3, 2013
Slide 2: Introduction: GEV Reporting
Introduction GEV Reporting Market Consistent Embedded Value©1 (MCEV) Principles applied Group Embedded Value (GEV) calculated as Life & Health (L&H) MCEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) All results are based on local GAAP. All results are shown after minorities and
Slide 3: Methodology
Methodology GEV GEV reflects the present value of amounts deemed to be distributable to shareholders. MCEV for L&H: Adjusted Net Asset Value (ANAV) plus Value of In-Force (VIF) determined as Present Value of Future Profits (PVFP) minus Time Value of Financial Options and Guarantees (TVFOG) minus Fri
Slide 4: Methodology
Methodology GEV MCEV is based on stochastic cash flow projections using market consistent economic scenarios. Liquidity premium and extrapolation methodology follows recent EIOPA development and market practice. The MCEV allows for management actions and policyholder behaviour. Assumed policyholder
Slide 5: Group Embedded Value Results
Group Embedded Value Results in € mn L&H P&C Total 2012 2011 (*) 2012 2011 (*) 2012 2011 (*) Austria / Germany Free Surplus 87.9 -708.2 Required Capital 830.0 926.3 ANAV 917.9 218.1 254.5 677.9 1,172.4 895.9 PVFP 1,550.4 1,647.8 1,550.4 1,647.8 - TVFOG -279.2 -147.0 -279.2 -147.0 - FCRC -132.0 -143.
Slide 6: Return on Embedded Value
Return on Embedded Value Results in € mn L&H P&C Total Austria / Germany GEV 2011 Reported 1,345.6 679.7 2,025.3 GEV 2011 Restated 1,468.2 677.9 2,146.0 Opening Adjustments 354.3 -393.8 -39.5 thereof Dividends -65.5 95.0 29.5 GEV 2011 Restated and Adjusted 1,822.5 284.0 2,106.5 Return on GEV 119.9 6
Slide 7: Value of New Business
Value of New Business Results in € mn Austria / Germany 2012 2011 % change VNB 36.6 33.5 9.1% APE 166.3 173.3 -4.0% PVNBP 1,815.2 1,692.4 7.3% APE-Ratio 22.0% 19.3% 13.7% PVNBP-Ratio 2.0% 2.0% 1.7% CEE 2012 2011 % change VNB 167.0 161.8 3.2% APE 373.1 266.9 39.8% PVNBP 2,874.8 1,849.0 55.5% APE-Rati
Slide 8: Value of New Business: Comments on VNB Results
Value of New Business Comments on VNB Results Value generated by new business sold during the reporting period More than 80% of VNB is generated in CEE Strong increase of life insurance business in CEE Profitability in CEE at a high level CEE profit margin 8.6%, excluding Polish new high-volume low-
Slide 9: Sensitivities: MCEV Life & Health
Sensitivities MCEV – Life & Health 12.8% Change in Yield Curve +1% -1.7% -24.4% Change in Yield Curve -1% 0.3% -4.2% Equity and Property Values -10% -0.8% -1.4% Equity and Property Implied Volatilities +25% -0.2% -3.8% Swaption Implied Volatilities +25% -0.2% -5.2% Maintenance Expenses +10% -2.4% 5.
Slide 10: Sensitivities: VNB Life & Health
Sensitivities VNB – Life & Health 11.9% Change in Yield Curve +1% -3.7% -45.5% Change in Yield Curve -1% 3.5% Equity and Property Values -10% -3.6% Equity and Property Implied Volatilities +25% -0.3% -5.7% Swaption Implied Volatilities +25% 0.1% -13.9% Maintenance Expenses +10% -3.5% 12.8% Austria /
Slide 11: Development of Return on GEV
Development Return on GEV in € mn 297 5,868 439 5,284 -66 5,218 -141 54 5,131 GEV 2011 Restatement GEV 2011 Dividends FX Effects GEV 2011 Return in Return in GEV 2012 reported changes restated adjusted L&H P&C 11
Slide 12: Analysis of Change – Life & Health
Analysis of Change Austria / Germany – Life & Health in € mn Operating Economic 90 -102 107 1,942 37 -12 1,822 MCEV 2011 Value of New Roll forward Assumption Operating Investment income MCEV 2012 adjusted Business 2012 changes variance and others 12
Slide 13: Analysis of Change CEE – Life & Health
Analysis of Change CEE – Life & Health in € mn Operating Economic 100 1,803 27 31 -6 167 1,484 MCEV 2011 Value of New Roll forward Assumption Operating Investment income MCEV 2012 adjusted Business 2012 changes variance and others 13
Slide 14: Reconciliation: IFRS Equity to ANAV
Reconciliation IFRS Equity to ANAV in € mn 2012 2011 Consolidated IFRS equity 5,751.9 5,049.6 Minorities -346.0 -419.0 Hybrid capital -495.6 -495.6 Intangible assets -2,410.0 -2,382.4 Subtotal 2,500.3 1,752.6 Goodwill, other intangible assets and capital consolidation adjustments 856.1 877.7 Differe
Slide 15: Summary Highlights
Summary Highlights GEV of € 5,867.6 mn (+12.4%) High Return on GEV of 14.4% amounting to € 736.4 mn Strong Value of New Business performance at € 203.5 mn (+4.2%) PVNBP increases by 7.3% in Austria / Germany and surges by 55.5% in CEE The Surplus in Claims and Unearned Premium Reserves increases by
Slide 16: Disclaimer
Disclaimer Cautionary statement regarding forward-looking information This presentation contains forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes describ
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